Court Blocks Rio 2016 Travel Grant Payments

(ATR) Renegotiations with creditors have blocked the payment of travel grants for small National Paralympic Committees Rio 2016 says.

A second installment of $3.7 million was due to be paid on Nov. 30 to the International Paralympic Committee. The IPC confirmed to Around the Rings that the money had not been paid as of Dec. 13. Payment for the first installation of travel grants was delayed until the start of the 2016 Paralympics, jeopardizing the participation of some delegations.

Rio 2016 communications director Mario Andrada told ATR the reason for the lack of payment was a Rio court granting an injunction blocking the movement of funds from the organizing committee’s bank accounts.

"We’re going to find another way to send [the funds] to the IPC," Andrada said. "When that is going to take place, I don’t have a clue because I don’t know where the money is coming from."

Andrada called the current economic climate in Rio de Janeiro a "complex situation," but assured that all obligations will be met. So far only seven creditors remain to be paid by Rio 2016, and the lawsuit stems from ongoing renegotiations of contracts.

Andrada says that the organizing committee continues to lobby the Rio municipal government for help, but understands the reality of the economic situation. The city has only paid the first installment of $9 million of the $45 million promised by Rio Mayor Eduardo Paes ahead of the Paralympics.

IPC head of communications Craig Spence told ATR that if the travel grants payment is not received soon, smaller National Paralympic Committees risk default on loans made to cover the travel grants. According to Spence, the IPC has gone as far to send a letter to Paes asking him to help cover the late payments.

Spence said the IPC is "hugely disappointed" with the lack of information regarding the payments. He said the IPC was only informed after the payments were late that the ability to pay the grants had been blocked.

"We are urgently seeking a resolution to this issue from all parties concerned," Spence said. "Ever since the issues with the late payment of the first installment of travel grants, we have been in close dialogue with Rio 2016 to ensure the second installment was paid on time. Despite their assurances, we were only informed on 9 December by the Organizing Committee of the problems they now face with repayment."

Andrada says he does not believe the situation will result in NPCs defaulting on loans needed to cover the grants. Discussions continue with the IPC and the Brazilian Paralympic Committee to sort out the situation.

"We need to get the travel grants paid to the IPC as fast as we can," Andrada added. "That is all we are going to do."

Written by Aaron Bauer

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